Various financial products exist that effect the transfer of funds between equity in a house and liquid assets, i.e., usable funds. For example, a reverse mortgage is a financial mechanism by which a lump sum and/or monthly payments to the owner of a home are financed by using equity in the home as collateral for a non-recourse loan, whereby the borrower is not required to make payments or repay the loan for as long as he, she or they live in the home. In such a reverse mortgage, the borrower/estate is typically required to repay the loan upon moving out of the home, upon sale of the home or upon death of the borrower, for example.
Further, it is known in the art to offer a reverse mortgage in conjunction with the purchase of a new home. Such a financial product reduces the out-of-pocket cash needed to buy the new home.
However, various shortcomings exist in the known financial products. The invention addresses these shortcomings.